Branding

Branding refers to a name, sign, symbol or logo which differentiates a firm from its rivals.

Advantages of brands

• Inspires customer loyalty leading to repeat sales and word of mouth marketing
• The brand owner can usually charge higher prices, especially if the firm is the market leader
• Retailers or service sellers want to stock top selling brands. With limited shelf space, it is more likely that top brands will be on the shelf rather than lesser known brands

Problems of developing a brand

• In order to develop a successful brand a business needs to spend considerable amount of time within which their performance should be consistent
• In order to develop a positive brand, a business must consider investing certain amount of cost into advertising and promotion
• Different products have different ways of promoting their brand. None of the ways can be similar and method might generate a different result